The mobile handset market is getting more polarized between low cost handsets for emerging markets
and high-end smartphones for developed regions - with the mid-range
handset market being squeezed, notes new research from Juniper Research.
Low-cost handsets and smartphones
will together account for almost 79% of all new mobile phones by 2014,
or just over 1 billion units in all. Operators and vendors are
preparing to deal with a massive influx of new users from low-income
socio-economic groups in developing markets and a rising demand for
complex 'smart' devices from affluent users in developed markets.
Vendors
such as Nokia, Apple and RIM (makers of Blackberry) are well positioned
to benefit from these trends whilst players operating more in the mid
range market such as Sony Ericsson and Motorola are having to rethink
their strategy.
According to Low-cost handsets report author
Andrew Kitson: "Low-cost handset shipments will number more than 700
million in 2014, up by 31% from levels seen in 2008, albeit down
slightly from a peak of 716 million in 2012 as some users begin to
upgrade to costlier devices. At the same time, smartphone shipment
volumes will grow continuously across the forecast period, reaching
almost 360 million by the end of the period. We therefore expect that
mid-range device sales volumes will fall by more than 41% over the
period".
Other findings from the Low cost handsets research include:
•
In 2008, the Indian Sub Continent region accounted for the majority
(23%) of low-cost handset sales, due to efforts by operators such as
Vodafone to meet low-income users' needs in markets such as India: by
2014, the region will account for 22% of sales.
• Take-up in
emerging markets will be boosted by the availability of low-cost,
highly targeted localised information services, such as Nokia's Life
Tools offering.
Low-cost mobile handsets whitepaper and further
details of the study 'Low Cost Handsets: Markets, Opportunities &
Forecasts 2009-2014' can be freely downloaded from
www.juniperresearch.com.